AB 102 — The Taxpayer Transparency and Fairness Act of 2017: California Department of Tax and Fee Administration: Office of Tax Appeals: State Board of Equalization.

Summary

(1) The California Constitution provides for the establishment of the State Board of Equalization and requires the board to consist of 5 voting members, consisting of the Controller and 4 members elected for 4-year terms by the voters of an equalization district. Existing constitutional law prescribes the board's duties, powers, and responsibilities regarding the review, equalization, or adjustment of property tax assessments; the measurement of county assessment levels and adjustment of secured local assessment rolls; the assessment of pipelines, flumes, canals, ditches, and aqueducts lying within 2 or more counties and of property owned or used by regulated railway, telegraph, or telephone companies, car companies operating on railways in the state, and companies transmitting or selling gas or electricity; the assessment of taxes on insurers; and the assessment and collection of excise taxes on the manufacture, importation, and sale of alcoholic beverages in this state. Existing statutory law prescribes the duties, powers, and responsibilities of the State Board of Equalization regarding the administration of various taxes and fees and generally makes the board responsible for administrative appeals relating to the collection of those taxes and fees and for the administrative appeals of state personal income taxes and corporation franchise and income taxes, which are administered by the Franchise Tax Board. Under existing law, there is a motor vehicle fuel tax administered by the State Board of Equalization. Existing law, until July 1, 2019, requires the board to annually modify the motor vehicle fuel tax rate on a going-forward basis so that certain changes in that tax and sales and use taxes are revenue neutral. Existing statutory law authorizes the State Board of Equalization to appoint its secretary and to prescribe and enforce the secretary's duties. Existing law authorizes the board to request the Governor to convert one civil service position of the board into an exempt position appointed by the Governor, obtain copies of licensee photographs from the Department of Motor Vehicles, and to conduct district investigations relating to the laws within the board's jurisdiction. This bill would establish, in the Government Operations Agency, the California Department of Tax and Fee Administration and would place the department under the control of a director appointed by the Governor and subject to confirmation by the Senate. The bill would also authorize the Governor to appoint a chief deputy director and a chief counsel. This bill would transfer to the California Department of Tax and Fee Administration the various duties, powers, and responsibilities of the State Board of Equalization relating to the administration of various taxes and fees except for those duties, powers, and responsibilities imposed or conferred upon the board by the California Constitution, as specified, and the duty to adjust the motor vehicle fuel tax rate for the 2018–19 fiscal year. The bill would, for these purposes, also provide for the transfer to the department of the board's employees serving in civil service, the rights and property of the board, and the board's funding, as provided. This bill would authorize the California Department of Tax and Fee Administration to adopt regulations, including emergency regulations, necessary or appropriate to carry out these provisions. The bill would authorize the department to conduct certain inspections and examinations related to the administration of the taxes and fees under its jurisdiction. The bill would prohibit the director, the chief deputy director, and the chief counsel from divulging information concerning the business affairs of companies reporting to the department and would make it a crime to violate this prohibition. By creating a new crime, the bill would impose a state-mandated local program. This bill would rename the secretary of the State Board of Equalization as the executive director and would specify that the board retains the authority to appoint the executive director and prescribe and enforce his or her duties. The bill would require each member of the board elected by the voters of an equalization district to have only one office in Sacramento and one district office. The bill also would require each member of the board elected by the voters of an equalization district to have 2 staff persons who are exempt from civil service and other civil service staff persons, as specified. The bill would require board member procurements to be processed through the Department of General Services. The bill would repeal the authority of the board to request that the Governor convert one civil service position of the board into an exempt position, to obtain copies of licensee photographs from the Department of Motor Vehicles, and to conduct district investigations. The bill also would restrict ex parte communications in relation to a board adjudicatory proceeding. This bill would make these provisions operative on July 1, 2017. (2) This bill would establish in state government the Office of Tax Appeals and would place the office under the control of a director appointed by the Governor and subject to confirmation by the Senate. The bill would also authorize the Governor to appoint a chief deputy director and a chief counsel. The bill would transfer to the office the various duties, powers, and responsibilities of the State Board of Equalization necessary or appropriate to conduct appeals hearings, except for those duties, powers, and responsibilities imposed or conferred upon the board by the California Constitution, as specified. Within the office, the bill would establish tax appeals panels and would require each tax appeals panel to consist of 3 administrative law judges, as specified. The bill, on and after January 1, 2018, would require the tax appeals panels to conduct, and would prohibit the board from conducting, appeals hearings for those duties, powers, and responsibilities transferred to the office. This bill would make these provisions operative on July 1, 2017. (3) This bill would provide that its provisions are severable. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (5) This bill would appropriate $5,000,000 from the General Fund to the Office of Tax Appeals for specified administrative costs, as provided. (6) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

• Chaptered 06/27/17 - Chaptered Current pdf June 27, 2017
• Enrolled 06/19/17 - Enrolled pdf June 19, 2017
• Amended 06/12/17 - Amended Senate pdf June 12, 2017
• Introduced 01/10/17 - Introduced pdf January 10, 2017
• AB102 View text html

Action History

1. June 27, 2017

   Chaptered by Secretary of State - Chapter 16, Statutes of 2017.

2. June 27, 2017

   Approved by the Governor.

3. June 21, 2017

   Enrolled and presented to the Governor at 2 p.m.

4. June 15, 2017

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 52. Noes 25. Page 2225.).

5. June 15, 2017

   Assembly Rule 63 suspended. (Ayes 52. Noes 25. Page 2224.)

6. June 15, 2017

   Assembly Rule 77(a) suspended.

7. June 15, 2017

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after June 17 pursuant to Assembly Rule 77.

8. June 15, 2017

   Read third time. Passed. Ordered to the Assembly. (Ayes 22. Noes 13. Page 1571.).

9. June 14, 2017

   Read second time. Ordered to third reading.

10. June 13, 2017

    From committee: Do pass. (Ayes 11. Noes 6.) (June 13).

11. June 12, 2017

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R.

12. May 18, 2017

    Referred to Com. on B. & F.R.

13. May 18, 2017

    In Senate. Read first time. To Com. on RLS. for assignment.

14. May 18, 2017

    Read third time. Passed. Ordered to the Senate. (Ayes 45. Noes 25. Page 1594.)

15. May 15, 2017

    Read second time. Ordered to third reading.

16. May 15, 2017

    Ordered to second reading.

17. May 15, 2017

    Withdrawn from committee.

18. May 15, 2017

    Assembly Rule 96 suspended. (Ayes 52. Noes 25. Page 1511.)

19. January 19, 2017

    Referred to Com. on BUDGET.

20. January 11, 2017

    From printer. May be heard in committee February 10.

21. January 10, 2017

    Read first time. To print.

Sponsors

• Committee on Budget · Primary

Votes

Subjects